China Committed to Russian Gas Project

WorldEnergyNews.com
Wednesday, April 30, 2014
Image courtesy Novatek

Chinese investors are committed to financing part of Novatek's $27 billion Russian gas project, ensuring it has sufficient backing despite losing U.S. support because of sanctions, the company said on Wednesday.

Russian corporate bond and loan issuance this year has languished on lenders' concern over becoming caught up in U.S. and EU sanctions imposed on Russian individuals in retaliation for Moscow's annexation of Crimea and support for separatists in eastern Ukraine.

But the scramble for funds is driving businesses to Asia, where cash-rich investors and governments are less critical of the Kremlin's actions.

"You are seeing a swing from where these big debt sources might have been to where they may move," one Moscow-based adviser said. "I think there will be a lot of conversations and travel between Moscow and Beijing - a more open dialogue."

Novatek's Yamal liquefied natural gas (LNG) project is being developed in partnership with France's Total and China National Petroleum Corp (CNPC).

The project recently lost U.S. export credit agency Ex-Im Bank as a sponsor after sanctions were imposed, Novatek said. Ex-Im, which has about $1.7 billion of exposure to Russia, said it suspended consideration of the Yamal LNG application in March.

Among the individuals on the U.S. list of people subject to asset freezes and visa bans is Novatek shareholder and billionaire businessman Gennady Timchenko, an ally of Russian President Vladimir Putin. Timchenko owns 23 percent of Novatek via his investment vehicle Volga Resources, which is also subject to U.S. sanctions.

"Adequate Support"
"We believe that there is adequate financial support for the Yamal LNG project from the remaining export credit agencies, as well as positive comments from Chinese financial institutions regarding their commitment to provide a substantial portion of the total financing package," Novatek Chief Financial Officer Mark Gyetvay said in a conference call.

CNPC and a consortium of Chinese banks signed a memorandum on project financing for the Yamal project in September.

China Development Bank Corporation, Industrial and Commercial Bank of China, Bank of China and China Construction Bank were considering actively participating in the external project financing transaction, Novatek said at the time.

"Our work activities relating to the Yamal LNG project are proceeding as planned," said Gyetvay. "We continue to hold constructive discussions with the international banking community, including export credit agencies."

Yamal LNG is slated to start production in 2017, targeting output of 16.5 million tonnes of LNG a year by 2020.

The $27 billion project is key for Russia's aim to double its global LNG market share to 10 percent by the end of the decade and will help Moscow in its efforts to diversify energy supplies away from Europe to Asia.

(By Megan Davies and Vladimir Soldatkin; Editing by David Goodman)


People & Company News

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Finance

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Energy

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

ABS Makes it Safer to ‘Walk to Work’

ABS announced the publication of The ABS Guide for Certification of Offshore Access Gangways. The new Guide addresses certification for safety systems used for “walk to work” (W2W) crew transfers.

Viking Grace Marks 1,000 LNG Bunkering Milestone

From the very beginning, the M/S Viking Grace – delivered in January 2013 – was an environmental milestone.   The vessel attracted global attention as an environmental

LNG

BP, ExxonMobil, ConocoPhillips 'Quit' Alaska LNG Project

BP, Conoco Phillips, and Exxon Mobil said that the 65-billion dollar megaproject would be too unprofitable for them to move into the next phase of development.

Viking Grace Marks 1,000 LNG Bunkering Milestone

From the very beginning, the M/S Viking Grace – delivered in January 2013 – was an environmental milestone.   The vessel attracted global attention as an environmental

Hoegh LNG Profits Dip

Norway-based owner and operator of floating LNG import terminals, Höegh LNG  reported a second quarter profit after tax of US$3.5 million, down from $6.3 million in the first quarter 2016.

News

MV WERFTEN, Foreship Sign Design Agreements

MV WERFTEN signed a letter of intent with the engineering company Foreship in Stralsund today. The agreement includes parts of the basic design as well as design,

Rockland Scientific to conduct Victoria Turbulence Observation Retreat

Building on series of international training workshops in Brazil, Chile, France, Poland, Vietnam and the UK, Rockland Scientific brings the next turbulence measurement

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Government Update

White House: Iranian Ships' Actions in Gulf Increase Risk of Miscalculation

Actions by Iranian vessels in several encounters with U.S. warships in the Gulf this week are cause for concern and increase risks of miscalculation, the White House said on Friday.

Cochin Port Gets a Little 'Breathing Space'

The Cabinet Committee on Economic Affairs of India, chaired by the Prime Minister Narendra Modi, has given its approval for waiver of penal interest on Government

Iran Vessels Make 'High Speed Intercept' of US Ship

Four of Iran's Islamic Revolutionary Guard Corps (IRGC) vessels "harassed" a U.S. warship on Tuesday near the Strait of Hormuz, a U.S. defense official said, amid

 
 
Maritime Careers / Shipboard Positions Maritime Security Naval Architecture Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1495 sec (7 req/sec)